May 25, 1999
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| May 25, 1999 | atimes.com | |
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| The Koreas Shipbuilding drought points toward Korean takeover SEOUL - South Korea's Hyundai Heavy Industries has emerged as the most likely candidate to acquire the struggling Halla Heavy Industries, business sources said Friday. Halla, which was placed under court receivership in November last year, planned to raise foreign capital to pay back bridge loans it obtained to keep its shipyard operating. The depressed world market for shipbuilding, however, is making it difficult for Halla to raise the required funds. Halla had considered a plan to solicit foreign buyers but nixed the idea after several potential investors from Europe showed no interest, according to the sources. Hyundai has thus emerged as the likely buyer of Halla, which cost 1.2 trillion won for its construction. Halla owes Hyundai about 120 billion won in overdue payments for material supply and has not repaid about 500 billion won in loans from Hyundai. ''If Hyundai acquires Halla, Hyundai will be vulnerable to insolvency,'' an official at the Commerce, Industry and Energy Ministry said. ''For the moment, the possibility of Hyundai's acquisition is high because foreign investors are not showing any interest." (Asia Pulse/Yonhap) | |||||||||
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